TORONTO, Feb. 9, 2024
/CNW/ - (TSX: CGX) – Cineplex Inc. ("Cineplex" or the "Company")
announced today that additional holders of its outstanding 5.75%
convertible unsecured subordinated debentures due September 30, 2025 (the "Convertible Debentures")
have signed consent agreements with Cineplex, bringing the level of
support to 69.1% of the outstanding Convertible Debentures.
Pursuant to the consent agreements, such holders have committed to
support the proposed amendments to the terms of the Convertible
Debentures described in Cineplex's press release dated February 8, 2024 (the "Convertible Debenture
Amendments"). Accordingly, Cineplex has now received written
support from holders of more than the 66 2/3% of its outstanding
Convertible Debentures required to approve the Convertible
Debenture Amendments.
The implementation of the Convertible Debenture Amendments
remain conditional upon the prior or contemporaneous completion
of:
- a private placement by Cineplex of new senior secured notes
(sized to be no less than $500,000,000 and no more than $600,000,000 and a term to maturity of at least
five years);
- the redemption in full of Cineplex's existing 7.5% senior
secured second lien notes due February 26,
2026; and
- the repayment in full of Cineplex's existing senior revolving
credit facility and replacement with a new $100 million senior secured credit facility with
a term of at least three years.
The Convertible Debenture Amendments also remain subject to
approval by the Toronto Stock Exchange.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities in Canada, the United
States or any other jurisdiction.
About Cineplex
Cineplex (TSX:CGX) is a top-tier
Canadian brand that operates in the Film Entertainment and Content,
Amusement and Leisure, and Media sectors. Cineplex offers a unique
escape from the everyday to millions of guests through its circuit
of over 170 movie theatres and location-based entertainment venues.
In addition to being Canada's
largest and most innovative film exhibitor, the company operates
Canada's favourite destination for
'Eats & Entertainment' (The Rec Room), complexes specially
designed for teens and families (Playdium), and a newly launched
entertainment concept that brings movies, amusement gaming, dining,
and live performances together under one roof (Cineplex Junxion).
It also operates successful businesses in digital commerce
(CineplexStore.com), alternative programming (Cineplex Events),
motion picture distribution (Cineplex Pictures), cinema media
(Cineplex Media), and digital place-based media (Cineplex Digital
Media). Providing even more value for its guests, Cineplex is a
partner in Scene+, Canada's
largest entertainment and lifestyle loyalty program.
Proudly recognized as having one of the country's Most Admired
Corporate Cultures, Cineplex employs over 10,000 people in its
offices and venues across Canada
and the United States. To learn
more, visit Cineplex.com.
Caution Regarding Forward-Looking Statements:
Certain
statements and/or information in this news release (identified by
words such as "may", "will", "could", "should", "would", "suspect",
"outlook", "believe", "plan", "anticipate", "estimate", "expect",
"intend", "forecast", "objective" and "continue" (or the negative
thereof)), and words and expressions of similar import, and similar
expressions suggesting future events or future performance are
intended to identify forward-looking statements. Such
forward-looking statements and/or information is based on
expectations and assumptions made by Cineplex and is subject to
risks and uncertainties which may be beyond Cineplex's control. A
comprehensive discussion of risks that may impact Cineplex can be
found in Cineplex's public reports and filings, including those
described in Cineplex's Annual Information Form for the year ended
December 31, 2022, and the
management's discussion and analysis for the year ended
December 31, 2023, which are
available under the Company's profile on Sedar+ (www.sedarplus.ca).
The foregoing list of factors that may affect future results is not
exhaustive. Readers are cautioned that undue reliance should not be
placed on forward-looking statements and/or information as actual
results may vary materially from the beliefs, plans, objectives,
expectations, anticipations, estimates and intentions expressed in
such forward-looking statements and/or information, including: the
implementation of the Convertible Debenture Amendments and the
ability of Cineplex to negotiate and complete a new notes offering
and the new senior credit facility. Cineplex does not undertake to
update, correct or revise any forward-looking statements and/or
information as a result of any new information, future events or
otherwise, except as may be required by applicable law.
SOURCE Cineplex